Third notice from Nikon on the damage from the flood in Thailand

Today Nikon issues a third notice on the situation in Thailand:

This is to advise you of the latest situations of submersion at Nikon (Thailand) Co., Ltd., a consolidated manufacturing subsidiary of Nikon Corporation in the Rojana Industrial Park in Ayutthaya Province located in Central Thailand.

  1. DamagesThe 1st floor of all buildings at the premises continues to be submerged. Operation of the factory has been suspended since October 6. No human damage is reported. As for the water level, the Rojana Industrial Park, where Nikon (Thailand) Co., Ltd. is located, announces that it has lowered by about 40 centimeters from the highest period at measuring points in the Park.
  2. Estimated impact to our business performanceThe impact of the flood on our business performance for the financial period ending March 31, 2012 has been estimated, within the scope of our current findings and understanding, to push down net sales by 65 billion yen and operational income by 25 billion yen. Our estimation of the financial results for the Year Ending March 31, 2012, announced at 15:00 JST today, has reflected these negative factors.
  3. RecoveryWe have set up support and recovery system under the Emergency Headquarters for Disaster Control headed by president and will endeavor to restart the operation as early as possible. Every possible measure is now under preparation to resume production by means as purchase of new manufacturing equipment, review of production allocation among Nikon group companies, etc. As for drainage from the industrial park, the Rojana Industrial Park authority explained to us that they expect water pumping-out to start in the beginning of November and complete by the end of November.
    We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012.

We deeply apologize you for any inconveniences caused by the disaster such as short supply of our products.

The water level at the Rojana Industrial Park in Thailand is indeed lower (compare it with October 21):

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  • xaphod

    ouch. still hoping no vital pieces of the D800 are made in Thailand…

  • Bas

    Don’t care about any ‘vital’ D800 parts.
    No human damage is my prio 1 line in this text. Prio 2 is starting production in another Thailand factory by December, with normal production by next April.
    Given these circumstances, we just have to wait a little longer for new gear.

    • mimmo

      So, Nikon D800?

      • Ben Hipple

        d800 in march

    • Rob

      It’s already been established there was no human damage. You don’t have to try to belittle others when there’s no logic behind it.

      • Steve

        Human damage ? WTF is that ? So lost jobs, lost income, lost homes, rising rice prices etc etc… this isn’t damage ? I don’t think it is belittling at all. Too many people here only care about a fcuking upgrade. It’s disgusting.

        • They see @Steve trollin’…

          …they hatin’..

        • As horrible as this is going to sound, you are on NIKONRUMORS website. People don’t generally come here to see how the people in other nations are doing. They can tune in to the news for that. They come here to see how their camera company of choice is progressing, and the outlook on their next gear introduction, etc. If you come here to read how people are starting prayer vigils and the like for the Thailand population, you’re going to be sadly disappointed. I really don’t see why you people get on here just to complain about us complaining. We obviously know about all the detrimental effects a natural disaster can bring about. Both personal, and financial. We obviously know about what kind of damage it can have on the lives and livelihoods of the citizens there. We clearly are aware of all this. The human race is a selfish one. You will see people get on here and make a bunch of posts about how sorry they feel for the Thai people; posts that will do absolutely nothing to help them, mind you, when the well being of that society starts impacting their day-to-day life in the way that the well-being of the Nikon corporation does. That sounds horrible in black and white, but that’s how it is. We all know what’s going on and how it’s affecting them. But we all care more how it’s affecting us. It’s result of society on human nature, and it’s unavoidable.


          • Meatdagger

            Speak for yourselves. I want made Nikon made with the blood and souls of under paid factory workers. I am not fully satisfied unless it was crafted with human teeth or christened in blood. That would be like buying a second hand firearm that wasn’t ever used to kill someone.

      • xaphod

        yeah, yeesh… just because I say I want a d800 doesn’t mean I want all of nikon’s employees to drown in floodwaters.

        If you presume something based on what someone did NOT say, you are putting words into their mouth. And you should go work for the American media, which seems to be good at this kind of thing.

        • Hahahaa. lol. +1


  • Nikon looking for the profits, don´t make a “plan B” for eventual natural disasters in their plants (we are on earth right?). Two conclusion came in my head:

    1 – Nikon don´t have a good planning sector
    2 – Nikon have great faith in God an Mother Nature Kindness

    What option you choose?

    I´m going for the first!

    Exploring poor people, in poor regions just to maximize the profit is a bad move Nikon. Take a look at Leica, Red, Phase One, Fuji. You must look to your costumers too, because someday, they may start looking somewhere else.


    • John M

      You can’t plan for everything, and if you could, it would be cost-prohibitive. Nikon is dealing with two major natural disasters that hit in two different locations in the same year. There is only so much you can do.

      • Cost-inhibitive. What does this actually mean? The guys with the deep pockets will only make $20M this year, instead of $50M? I know this is an exaggeration, but that’s what it boils down to.

        • Unless Nikon is a solely privately owned company, the “guys” you are talking about making less money might be yuor neighbours, friends, family members, retirees with pension plans, etc…

          What most anti-capitalists (not saying you are one, but your comment does speak to the same misunderstanding) fail to understand is there is no bigwig behind a huge mahogany desk with sacks of money with $$$ on them around it. Instead, most huge corporations (you know, the ones certain people love to hate) are owned mostly by the avergae investor just trying to get ahead. Sure, a few large players have million invested, but that’s certainly not the majority.

          Just thought I’d clear that up. Happy Capitalism.

          • NotBlameJustLife

            Its not blame, but its just reality…

            If Nikon chooses to operate in third-world nations, its to save money — if those third-world nations don’t have the same protections as first-world, then loses over a period of time should be expected (and planning should understand that they may exceed savings in some cases, thus negating the purpose of moving to a cheaper production country). Same thing if they have factories that are near-ish shore lines or in low-laying areas.

            New Orleans flooded. Japan flooded. Thailand flooded. These kinds of floods happen in countries that face the ocean. Especially if you aren’t building on a mountain or hill top. The “1 out of 100 years events” should be planned for.

            Of course, they could come build in the United States. I’d still love to see that.

            • Alex

              Have you missed the floods in the mid-west USA or the big ones they had in Europe a couple of years ago? Here in my home state we are largely immune from floods but we did have twisters last April that did huge damage including totally wiping out some manufacturing plants. If those storms had tracked just a few miles differently they could have wiped out Mercedes’ manufacturing in the USA. The list of absolute safe places if pretty small.

          • CYA

            Familiar with the concept of ‘Inclusive Capitalism’? Maybe the difference between ‘stockholder’ and ‘stakeholder’? When a company succeeds, it is best to allow the employees to succeed as well —the employees will strive that much harder to improve business stability and profit. THAT is what made American Capitalism GREAT in the 50’s-60’s, and the desire for fast money at the expense of the employee is what is putting nails in the coffin 80’s-now.

        • iamlucky13

          No, it means balancing risk and cost.

          The corporate structure is really irrelevant. If it happens to an employee owned company, the consideration is the same as if it happens to an investor owned company. In either case, all of the involved parties want to maximize profit.

          If you face a 1 in 100 chance (over some given time frame) of something that will likely cost you $100 million if it happens, the most simple consideration would estimate mitigation to be worth $1 million in mitigation.

          The actual consideration is never that simple, because odds and levels of expected damage and effectiveness of mitigation are never clear, and some choose to place a higher value on keeping assets on hand to have available to respond to problems, while others place a higher value on increased confidence in pre-empting problems, etc.

          In this case, Nikon expects a net income impact of 25 billion Yen ($320 million USD). If they had kept all their production in Japan, instead of having some of it in Thailand for the last 20 years, would the 20 years of labor have cost more or less than that? Would that just move the damage this month from the flooding to earlier this year from the tsunami.

    • I’m with you on the poor planning, by Nikon management and the Thai government (not to mention Western Digital, Sony, Honda, et al). It’s only been 60 years since the last time they had flooding this bad. That’s not too long a time frame to consider for flood control and industrial planning.

      There are a lot of people who should lose their jobs for this, to share the pain of the displaced workers. Plus it would be good PR to show former Nikon managers and former Thai ministers hauling sandbags and scooping mud.

      • Andrew


        Let’s think for a moment… no, before we think, let us first read and understand Nikon’s statement.

        Nikon states that they will resume production in December at various factories and that normal operations/production will be achieved within 5 months. This is impressive. It seems like good planning to me, the fact that Nikon can even start production as early as December, which is next month.

        Now I must say I don’t quite understand what you mean by “poor planning”. What should Nikon have done differently?

    • happysnapper63

      Disaster planning, or rather business continuity planning, is based upon an assessment of : Probability of occurance v projected impact v cost of mitigation. The probability of of flooding to the levels and for the duration experienced would be assessed as relatively low, impact reasonably high but not at the corporation terminating level, cost of mitgation against the flood levels and duration of the same astronomic.

      Decision easy. ………

      Two natural disasters of the magnetude experienced in one year in those two specific locations.

      Nikon and the other manufacturers will have bigger issues to worry about given whats happening here in the Eurozone, with Italy now lining up behind Greece to destroy the banking system………… that particular financial tsunami will traverse the globe. There is going to be a global shortage of customers in a position to buy whatever products they do announce.

  • Matsuoka

    Let’s hope Nikon will not move their D800 production to the “crap-pix” factory in China

  • Hom Thogan

    Oh boy, the guys at B&H and Adorama must be pleased to hear they can hike up their prices without a solid reason again! And even more when we are so close to holiday season!.

    • broxibear

      Don’t know about B&H and Adorama, but here in the UK D7000 and D5100 bodies are already out of stock at the main photographic retailers and prices are creeping up.
      It’s a mirror image of what happened after the events in Japan as far as stock and prices are concerned.
      April 2012 is a long wait for retailers to get stock. Meanwhile potential customers will be buying the cameras that are in stock, primarily Canon and Sony.
      I hope Nikon take some sort of advantage from this instead of crawling into a dark corner. Throw out a teaser ad for the D4/D800 just to show that it’s not all doom and gloom.

      • Hmm…supply and demand…

        You know – hypothetically – if you wanted to sell and switch to [Brand X] now would be the time because you can probably get more for your Nikon gear (the good stuff D7000, D700, pro glass) than you would if production was up at full bore and retail supplies were readily available.

        Opportunity thrives in fields of chaos…

        • john

          Great idea Jeremy…I am actually thinking about that. I have too much invested in Nikon. Don’t have much faith in their ability to plan or deliver. Canon is a larger company. I do love Nikon products…

          Is Nikon going to emerge as a company that will be able to compete in terms of supplies?

          The new N1 series, will it accomodate my lenses DX or FX?
          I don’t trust the decision making at Nikon.

          I think that they are a company that needs to change it’s business model to succeed but they won’t…Old players won’t change.

          • For now my current system that is built around D700 and D7000 meets – even exceeds – my current needs. When I’m finally ready to invest in another body these will be my criteria:

            * Got to be full frame.
            * 1.5 – 2 stops better high iso/low noise performance than my current D700.
            * Greater dynamic range.
            * At least 16MP, ideally 18MP, nothing over 24MP. (negotiable)
            * Dual card slots (preferably one of them SD so I can use eyefi – but not a deal breaker)
            * Minimum of 8 frames / sec without a detachable battery grip (if a grip is integrated, that’s cool)
            * weather sealed/magnesium alloy body.
            * improved battery life.
            * a great selection of fast primes with excellent center sharpness wide open.

            At this point I could not care less who makes it. Canon? Nikon? All options are on the table…

            • Andrew

              I think Nikon has set the bar really high with the D7000 (w/weather sealed body) at $1200. Any model higher, such as the D400, D4, D800, or some new and unanticipated model should push the price performance bar higher. The specs of the D800, as I have said before seems like the upgrade to the D3x at half the price. If Nikon can do the same for their new FF, high ISO model, whatever it is called, it will create a lot of excitement in the DSLR market. I think in the next 6 months, we will have a very clear picture what Nikon will be introducing in the high-end DSLR market. Now that they have gotten the D3100, D5100, D7000, and Nikon 1 out of the way, their focus should be now turned to the D400, D4, and D800. I just hope they bring a FF 24MP camera with Expeed 3 and incredible video performance at the $2,000 price range

    • That’s a bit harsh!

      As retailers we are controlled by the manufacturers and distributors in more than simply accessibility to the products; discounts that we have previously been offered will no doubt start to be withdrawn as stocks reduce while Nikon struggles to recover from the flooding in Thailand.

      Our overheads and running costs, as well as those of our distributors, are fixed (unless employees are laid off). With the probability of projected business being down, Adorama’s ability to absorb the increased costs from Nikon may well be reduced.
      Orders in process that we would have been expecting to be filled by incoming shipments, will be charged at the increased rates set by the manufacturer / distributor, not those rates which were effective when those orders were placed – even though we have always pledged to do our best to honor the price of back-orders to customers.

      Finally, the source of the funds used to purchase stock can have a huge impact, which is the main reason why MAP agreements are so very powerful.
      The financial agreements between retailers and the manufacturers / distributors are complicated; it isn’t a clear case that all the items on our shelves or in transit to us are necessarily owned outright by us at the point of sale to the customer.

  • Rob

    Japan is uncivilized?

  • bobby

    omg you people want everything.

  • Bob the tog

    Seriously? guys, some of these comments are so out of order.

    People’s lives ruined and a company that we all (supposedly) like has major difficulties and all you can do is question their management and ask about their new product??

    S***t happens and it’s only consumer goods FFS.

    Does the fact that the cameras are assembled in Thailand make any difference whatsoever? Nope! The only reason that Nikon can provide the goods at the price they do (and still earn the same profit) is because they get cheaper labour elsewhere in the world. It’s simple economics and business sense. Would you pay $200 more on a camera so that they can move their factory to somewhere else?
    Thought not!

    • You know, given the scope of the setbacks that has it that part of the world, and though we are a vocal minority screaming for the D800, I think our calls for a new product can’t be heard over the fact that that region’s “ears” – and Nikon’s – are still ringing from all the proverbial explosions they’ve been hit with. Truth of the matter is that P&S and consumer products are probably Nikon’s bread and butter, so they will want to recover that first. Those of us screaming for new high $ pro level gear really don’t account for the bulk of their revenue.

      So the real question that must be answered is this:
      What do you think that Justin Beiber’s baby will look like?

      • We are not screaming for the D800. We are screaming frequently out of stock D700, D3s bodys, price politics, because the failed planning of and so for natural disasters, both. We have the best for still shooting sure, we have the best glasses, we like Nikon for sure.
        But we have the right to talk about what Nikon can improve, don´t we?
        What i see, it´s Nikon don´t listen to the costumers, neither in firmware (60 fps for D7000/D5100 for example), neither in mirrorless department (2.7 no DOF sensor). Errors and errors in my opnion. It´s just an opnion you have your, i have mine.


        • In stock, out of stock, prices too high, whatever.

          Personally, I think Justin Beiber’s baby will look funny if it has its father’s haircut.

        • @Bernardo Vaghi

          On a serious note, I looked at your site. You produce very, very nice work.

          Don’t take my previous comments too seriously, if you read them closely you’ll see that I’m poking fun…at ALL of us 🙂

          Good job!

          • Thanks Mate!

            I´m not that serious too, just chating like a Nikon fan and trying to extract the best of the discussion! =P

            I´m working hard here to make better photos, let´s keep on movin!


    • John

      Well right now Nikon is providing no product at any price. Why not build the next plant on mount krakatoa. The regions Nikon picks have far greater risk of natural disaster than many other regions of the world. Maybe Canada, Europe, USA …
      I know Nikon can’t share their mfg and marketing plans with the public.or it’s competition but at the very least letting us know if we are investing in a system that they plan to support or not. We aren’t talking about small investments. Forums like DX or FX D7000 or D700 or D300s. Will there be a D400. Should we buy only FX lenses. Nikon expects too much blind loyalty from it’s customers. I feel for the employees and their families but not for the upper idiot management. Just bad decision making.
      I own so much glass and two bodies that are the best in the world. What will I put the lenses on if the body dies. They make a great product when they actually make one and can deliver it.

  • pabs

    Still no info on what production is being affected. We can presume DX line and lenses but we knowo nothing about what parts, if any, for D800; what’s going on with Sony sensor production and how Sony’s plant is doing (presumably the same); if D800 producing factories elsewhere are being diverted to accomodate other lines of production. Of course, Nikon is doing all they can and things take time but from their description, we are in for a reasonably long wait.

    • Don’t think we need that, we can just read labels ;~). All DX bodies, and a large contingent of DX lenses have “Made in Thailand” on them. Those would ALL be stopped in production at this point.

      The numbers Nikon presented are interesting, though. A three-month off-line time period should distort the numbers by about 2x what Nikon gave as estimates on sales. This would imply that there’s more inventory in the system then you’d guess from linear extrapolations (makes sense, as a lot of Christmas inventory should already be produced).

      Sony’s stated “loss” from Thailand was much smaller than Nikon’s for some reason. I’m still trying to figure that out. But again, it appears that a fair amount of inventory was already en route when the flooding occurred.

      As for FX, it’s anybody’s guess. I don’t know if there’s a part issue or just management distraction or both. But it seems clear that Nikon has postponed several FX announcements.

      • iamlucky13

        “Sony’s stated “loss” from Thailand was much smaller than Nikon’s for some reason. I’m still trying to figure that out.”

        Flooding is indiscriminate. Who gets hurt worse comes down largely to who has more assets in the wrong place and who depends most on 3rd party assets (suppliers, local infrastructure, etc) also in the wrong place.

        I guess there’s also a question of the accuracy of either estimate. Nikon could be high-balling their estimate, and Sony could be low-balling it.

        Or they could both be low-balling it.

      • John

        I Nikon would just make a statement to assure us that either pro dx or fx camera’s are coming at some point, we at least would know whether we’re waiting for something we want or not. Then we could justify the wait or move on. We don’t need specifics just a teaser that’s true. Like High end DX or FX on the the horizon.

        They have never made any kind of statement to help us make a decision.

        I don’t think that is so unreasonable.

      • PHB

        Nikon’s priority will be to make DX cameras to fulfill their Xmas orders. It is no surprise that they would have inventory stockpiled ahead of their biggest sales season.

        I would expect that they would move assembly of DX to Japan as a temporary measure while they completely rebuild the assembly line of the Thai plant. That might well mean stopping production of the FX bodies.

        The people who read NR will wait for their D800 however much they pretend otherwise. The people looking for an Xmas DSLR will not.

      • Richard


        Any word on sensor production from Sony or other sources?


    • broxibear

      Hi pabs,
      Difficult to find out if any FX parts are made in the Thai factory, I know some of the front and rear lens caps for Japanese made FX lenses are made in Thailand.
      I’ve also heard that the all silent wave motors and autofocus units come from Thailand, I’m not 100% sure about this though so if anyones got further info ?

      • pabs

        Thanks broxibear,

        Those details are what I’m talking about. I’m an advanced amateur but follow these threads closely. While my heart goes out for the people affected by both the tsunami and now flooding, I’m struck by some of the inconsitencies in the reporting; ie Thailand is a DX area and Sendai the FX producing area.There must be some overlap in services/production. I would think that the corporate structure of a company like Nikon can still function in other areas when there is a problem in a separate area. it’s hard to believe that they couldn’t have the resources to advertise and produce their FX line while crisis manage their DX line if there were no overlap.


  • qztronic

    Oh I’m sorry!, This “uncivilized” part of the world you say is where they have best craftsmanship in south east Asia. I’ve got to tell you, if the lenses are made somewhere else around Thailand, it will not be as good as one from Thai’s made standards, Yeah, and this part of the world have a name, It’s “Thailand”. Yes, The present government is suck and stupid, but No, there’s no right for calling this part “Uncivilized” just because we have a natural disaster you ……..!

  • LOL

    That’s it, I’m switching to crystal pepsi.

    • John

      Try Diet Mug Rootbear, it’s great….No supply problems…Problem is they don’t take pics as good as the nikons do.

      Upside we won’t need to upgrade..and there is plenty of Soda arund…

      I am trading all of my Coke for Diet Mug now.

  • this make take longer what are they going to do with all the submerged machinery let them dry i think they will be useless and all new systems will be needed be prepared for price increases again be happy with what you have

  • HalbVoll

    Why are all Nikon press releases duplicated here? If I want to read the whole thing, I get the feed. I personally would much rather see (and expect) a summary of the release than a exact copy.

    • Jetfire

      Why not? Some people come here for news.

    • Eric Calabros

      Here people can share their thought.. in Nikon site they cant.main reason for me to choose NR for news

      • HalbVoll

        You would still get the news and you’d still be able to discuss it here – the point is “cross-blogging” – duplicating a post without adding something. A link would be enough to show you where the “news” was made.
        Adding an own summary of the topic would add value, and save time for the readers of nikonrumors, as they’d get a recap of the initial news, and then still can decide whether or not they want to read the whole thing.

        bythom is a fairly good example for that. Whenever Nikon releases something to the press, he reads through it and gives (A.) a brief summary, and (B.) also tells what he thinks about it. In journalism A. and B. are always present and in good journalism they are always clearly distinguished.

        Don’t get me wrong, I’m very grateful for nikonrumors, and I think the admin is doing a very good job on the rumors front, however, the post about the official Nikon stuff always feels like a filler that adds long post with very little effort.

        • the truth is that I had two more posts waiting and did not have to recap, I usually do

          • john

            @NR Admin. We are grateful for what you do gather and release in terms of news……

            Thank you for what you do!!

  • Kerry33

    Sounds like a typical american guy…ok lets open a factory in UK, then hike the price of upcoming nikon d800 to 3000 pounds. Oh! Then you would complain its to expensive right? You such a predictable!

    • john

      @Kerry33…..There are only a couple of choices. UK is a stable country and government and yes we would pay more. But Kerry, we would actually be able to buy something. And yes I’m from the US. The countries selected by manufacturers is based for the most part on price. The availability of workers and stability of gov’t as well as probability of natural disaster are other deciding factors.
      Like I said in my earlier post we can’t get anything at any price at the moment and have no idea when that will change.

      I’m not knocking any country just Nikon’s choices for specific locations.

  • billy goat

    Now that they got the 1st notice out of the way, it seems the updates are flooding in!

  • kyoshinikon

    How high is the water mama?
    2 Feet high and risin’

    How high is the water papa?
    2 Feet high and risin’…

  • Dweeb

    Only Nikon would be drowning in filthy waters on the other side of the world and call out, “Help, I have a situation” to rescuers.

  • Dweeb

    Then again, “No human damage is reported. “. Like I say, they can always find a place in Ohio to make cameras.

  • Andrew

    I have read all the posts up to this point, and I think nearly everyone has missed the main point. And that is, since the flood, Nikon management and engineers have been consumed (or distracted) by the flood in terms on focusing all of their attention on its impact and the remedial actions they would need to take in order to get their business back on track. And the result is that this news release we are all commenting on is detailed in the sense that they have spelled out the result of their analysis and the decisions they have made; which is:
    1. Production will be shifted to other factories and will resume gradually starting in December 2011.
    2. Production will return to normal by the end of March 2011.

    What does all of this mean? Well, this brings me to my main point, that (hopefully) Nikon should now be in a good position to determine how the disaster will impact the release schedule of the D800, D400, and D4. So we can expect Nikon to soon provide guidance on the release schedule of their next FF camera – and of course Nikon Rumors will provide leaks long before Nikon’s official news conference.

    • Andrew

      Correction… March 2012.

  • pabs
  • Maximus

    Good to hear that. May God help them. Two of my friends shifted to Canon and were persuading me to do the same. I denied. I was not sure. After reading this I am now slightly happy.

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